If you have trouble paying back your monthly consumer credit, you can do the following:

• Ask your insurer to pay monthly payments on your behalf, if you have taken out insurance for the credit, and if your difficulties arise from one of the circumstances provided for in the insurance contract (for example, sickness, disability, loss of employment)
• Ask the financial institution that gave you the credit for any extension or delay in payment. The lender is not obliged to grant you these facilities.
• Ask the judge for a grace period, i.e. a suspension of repayments for a period of up to 2 years, without surcharges or penalties for delay. You will have to build a file with the documents that attest to your difficulties (resources, charges and reimbursements in progress in particular) and bring your home before the competent court.
• Drop a over-indebtedness record, if your difficulties are significant and lasting

The law requires credit institutions to be tolerant before initiating enforcement proceedings against a distressed borrower.

For example, in the event of payment difficulties, your credit institution should consider renegotiating the loan according to your personal situation, using one of the following measures:

• Total or partial refinancing of the credit agreement
• Extension of the duration of the credit agreement
• Total or partial suspension of monthly payments for a given period
• Change in interest rate
• Adjustment of the schedule (e.g. reduction of monthly payments)
• Partial debt relief and debt consolidation.

Starting on 1^er If you fail to pay, the financial institution has an obligation to inform you of the risks you incur if you fail to regularize the situation.

This information must be provided on paper or in another durable medium.

The financial institution may decide, despite your default, to temporarily pay the insurance contributions on your behalf, to allow you not to lose the benefit of the guarantees provided for in the contract.

If the credit institution has required you to take out insurance for the loan, and you have taken out this insurance with an external company, the insurer must inform the credit institution that your insurance premiums have not been paid.

When you default on the monthly installments, the credit institution has the right to demand the immediate repayment of the principal outstanding and interest overdue but not paid yet.

The principal amount outstanding shall earn interest for the credit institution at the rate of the loan between the date of the delay and the date of your payment.

If the credit is used to finance a lease agreement with a promise to sell or a lease-purchase agreement, the financial institution has the right to demand the return of the property and the payment of rent due but not yet paid.

In the 2 cases, the credit institution may also claim compensation from you to cover the damage caused by your default.

This allowance may not exceed 8% of the balance outstanding.

If the financial institution decides not to require immediate repayment of the outstanding principal, it may offer to renegotiate the loan according to your personal situation, through one of the following measures:

• Total or partial refinancing of the credit agreement
• Extension of the duration of the credit agreement
• Total or partial suspension of monthly payments for a given period
• Change in interest rate
• Adjustment of the schedule (e.g. reduction of monthly payments)
• Partial debt relief and debt consolidation.